Property Market Update - August 2022

Written by Rohan Aalders, NSW State Sales Manager

There is a lot going on in the property world right now. A lot of opinions are getting plenty of air time, and not just in the media. Property is, and always will be, a discussion point in this country. From cafes to barbeques to pubs, the topic invariably comes up and everyone has their take on things.

It is important for us to recognise that when people try to forecast the market, every component that makes up that forecast must pan out correctly or it throws the whole equation off. If you’re factoring in wage growth for example, and it stagnates, you can find very quickly your projections are incorrect. This is why we regularly see banks (who have a terrible track record of predicting the market) change their forecasting on a very regular basis. 

Economists aside, it's the average punter who seems to know everything and is the loudest. These are the people making all sorts of bold predictions based on the odd headline; headlines are written for clicks and often the story in the article does not reflect the headline. These people typically are not active in the market so I’m not sure how they can make such predictions. We have heard them cite “interest rates”, which remain below the 40-year rolling average; sure it’s a factor but it doesn’t wholly control the market(s).

This is the noise.

Real-time data, actual feedback from buyers and sellers in the market, developer activity or lack of activity, transactions, movements in the rental market, net migration and supply of new dwellings - these are the signals.

In other words, we need to identify which trends to believe and buy into - the signals - and which to ignore - the noise.

We certainly aren’t saying the market is rising, but there are a number of factors at play that pull it in different directions. Think of it like a see-saw. Rising rates and borrowing capacities changing are pulling the market in one direction, however lack of supply, increased net migration, rising rents, low, low vacancy rates and an uptick in investor loans are pulling it in the opposite direction. These factors will affect different parts of the markets differently.

If you would like to know your options and are seeking real-time data on a micro level please reach out to us. We are happy to share what we are seeing all over Sydney.

If you’d like to know what your options are in the current market get in touch with our expert team at iBuyNew on 1300 123 463.